The government stop the periodic price war between newspapers, due to the unfairness of global rivalry like News Corporation. The News Corporation strategy was to win market share from their newspapers, which established were. Within the newspaper market there is little difference between products, therefore many customers switch easily from one product to another due to the prices of newspapers. Newspaper only can differentiate themselves through branding. In addition, competition rivalry may also be intense where it is difficult to leave because barriers to exits are high.
Threat of entry.
Entry to the newspaper industry is extremely difficult, the highly expensive market of cost of brand recognition. The risk that this hugh marketing expenditure would not pay off is a deterrent of new companies thinking about entering the market. Also due to the frequent price wars between the incumbent firms, this is less attractive for new entry competition.
Existing barriers are high because it is not easy to liquidate assets, also there are many regulations concerning disposal of waste. Product differentiation in the newspaper industry has difference in offering different newspaper to different classes A, B, C. This means greater customer loyalty to the newspaper market. Distribution channels within the newspaper industry is relativity easy, established newspapers companies have loyal outlets. Legislation or government action within the UK competition law does not permit "predatory pricing", which is unfortunate for News corporation.
Threat of substitutes.
Substitutes offered electronic newspaper, which are on the internet. Which was offered by "The daily Telegraph" This alternative technology is a new source of competition, which betters the environment as less use of newspapers causes" unnecessary waste. This is not a terribly serious threat as computers are not purchased by everyone.
The power of buyer.